Crude Oil near $300 plus

If the crude oil price follows its performance of the last 100 years, then a print of $300 plus oil in US dollar terms is on the table in the next decade.


Of course, crude oil priced in US dollars means higher oil prices can be the result of bearish US dollar fundamentals more so than a bullish crude oil fundamentals.

Pulling commercial (light sweet) oil out of the ground can be classified into two groups: easy and hard. Easy is cheap oil production; hard is expensive oil production. The world has enjoyed cheap oil production for decades, and we are now moving into expensive oil production.

Buy the deep corrections are to be considered over the next decade.


Chart 1 - This tweet makes a point, plus it highlights the debate around future oil production. 

Chart 2 - Oil history and price channel forecasts

Chart 3 - Oil long term cycle

Chart 4 - No wonder central banks are buying all that gold. Gold follows oil.

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